South Africa’s National Budget has finally passed through Parliament following a contentious and chaotic session that exposed deep divisions within the Government of National Unity.
The fiscal framework was approved by a narrow margin of 192 votes to 182, with most political parties aligning with the ANC — notably excluding the Democratic Alliance.
The approved budget includes provisions for National Treasury to find alternatives to the proposed value-added tax increase and to address income tax burdens affecting poorer citizens.
Wednesday’s session, which started 45 minutes late, was marred by heckling, multiple points of order, and allegations that the process was illegal. Several MPs were ejected from the chamber for attempting to enter after doors were locked for voting.
“I don’t think you can vote against the budget and tomorrow be part of its implementation,” Finance Minister Enoch Godongwana said in a passionate defense, noting that Treasury had listened to public concerns by allocating more funding to SARS to collect outstanding taxes worth approximately R800 billion.
The EFF’s Omphile Maotwe threatened legal action, claiming the process violated procedural law. ACDP MP Steve Swart echoed these concerns, suggesting Treasury should have “obtained the opinion of a senior advocate because it will end up in court.”
This vote marks the culmination of multiple failed attempts to pass the budget since February, when several GNU members rejected the initial proposal containing a two-percentage point VAT increase.
Opposition parties have consistently argued that increasing VAT would disproportionately harm poor South Africans. Finding alternatives to this increase and addressing tax bracket creep leaves government with a revenue shortfall of at least R28 billion.
The MK party’s Des van Rooyen criticized Treasury for ignoring its proposals to review corporate tax incentives and suspend government staff retirement annuities, while the DA’s Mark Burke described the entire process as “farcical,” claiming VAT increases remained “baked into the fiscal framework.”
ActionSA’s Athol Trollip highlighted that South Africans had been made poorer during the prolonged budget impasse as the rand devalued, while FF+’s Wouter Wessels warned that “a tax revolt is imminent in South Africa.”
